OPERATIONS MANAGEMENT

BEGINNER’S GUIDE
Batch 2025-27

OPS CHAIN CLUB

WESCHOOL, MUMBAI
Table of Contents
1. Introduction to Operations Management
➢ Operations as a Core Function
➢ Industry Evolution Phases
2. Operations Management Frameworks
➢ Systems Perspective
➢ Goods vs. Services
➢ Competitive Strategy through Operations
➢ Strategy Formulation Process
3. Productivity and Strategy in Operations
➢ Single-Factor Productivity
➢ Strategy and Issues during Product Life Cycle
➢ Porter’s Five Forces Model
➢ Strategy Development Process
4. Project and Process Management
➢ PERT & CPM Techniques
➢ Process Selection with Volume & Variety
➢ Characteristics of Different Processes
5. Lean and World-Class Operations
➢ Lean Operations
➢ Characteristics of World-Class Operations
➢ Customer-Centric Approach
➢ Total Quality Management (TQM)
➢ Just-in-Time (JIT) Production
6. Japanese Operational Excellence Principles
➢ Kaizen (Continuous Improvement)
➢ Muda (Waste Elimination - 7 Wastes)
➢ Heijunka (Production Leveling)
➢ Jidoka (Automation with Human Touch)
➢ 5S Methodology (Workplace Organization)
➢ Hoshin Kanri (Policy Deployment)
➢ Gemba (Real Place for Work)
➢ Hansei (Reflection & Self-Correction)
7. Current Industry Insights and Emerging Trends
➢ Investment in Cold Chain Infrastructure
➢ Warehousing Expansion in Tier 2 & 3 Cities
➢ Increasing Demand for Skilled SCM Workforce
➢ Expansion of AI & Automation in Logistics
➢ Growth of E-commerce & Supply Chain Sector
➢ Regulatory Framework Development
8. Reference Books and Video Links

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About
Operations Management is a crucial discipline that plays a pivotal role in ensuring efficiency,
productivity, and competitiveness of businesses. This file is designed for operations aspirants,
providing them with a comprehensive understanding of key concepts, frameworks, and
industry practices essential for mastering the subject.

The purpose of this document is to familiarize students with the fundamental terminology
and principles used in Operations Management. By covering topics such as process
optimization, supply chain management, lean manufacturing, and emerging industry trends,
this file serves as a valuable resource for both academic learning and practical application.
With rapid advancements in technology and evolving business landscapes, staying updated
with modern operational strategies is essential. This file bridges the gap between theoretical
knowledge and real-world applications, equipping students with the insights needed to excel
in the field of Operations Management.

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What is operation?
➢ Operations management (OM) is the set of activities that creates value in the form of
goods and services by transforming inputs into outputs.
➢ Operations management is a systematic approach to addressing issues in the
transformation process that converts inputs into useful, revenue-generating outputs.
➢ Operations management is a systematic approach. It involves understanding the
nature of issues and problems to be studied; establishing measures of performance;
collecting relevant data; using scientific tools, techniques, and solution methodologies
for analysis; and developing effective as well as efficient solutions to the problem at
hand. Therefore, for successful operations management, the focus should be on
developing a set of tools and techniques to analyse the problems faced within an
operations system.
➢ The goal of operations management is to ensure that the organization is able to keep
costs to a minimum and obtain revenue more than costs through careful planning and
control of operations.
➢ Production is the creation of goods and services.

Operations is one of the three functions that every organization

performs.

Fig1: Industry Evolution in Phases

▪ To create goods and services, all organizations perform three functions. These functions
are the necessary ingredients not only for production but also for an organization’s
survival. They are:
o Marketing: which generates the demand or at least takes the order for a
product or ser vice (nothing happens until there is a sale).
o Production/operations: - which creates, produces, and delivers the product.
o Finance/accounting: which tracks how well the organization is doing, pays the
bills, and collects the money.
Universities, churches or synagogues, and businesses all perform these functions.

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Operations Management: a Systems perspective
A systems perspective facilitates a comprehensive understanding of the various
aspects of operations management. A systems perspective essentially involves identifying the
input, the output, and the processing and feedback mechanisms in a system.

Fig 4: System Perspective

Operations for Goods and Services
Services: Economic activities that typically produce an intangible product (such as
education, entertainment, lodging, government, financial, and health services). The operation
activities for both goods and services are often very similar

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 Fig 5: Difference between Goods and Services

Productivity:
The ratio of outputs (goods and services) divided by one or more inputs (such as labor,
capital, or management). Improving productivity means improving efficiency. This
improvement can be achieved in two ways:
1. Reducing inputs while keeping output constant.
2. increasing output while keeping inputs constant. Both represent an improvement in
productivity.

Productivity Measurement
Productivity = Units produced /Input used
i. Single-factor productivity: Indicates the ratio of goods and services produced
(outputs) to one resource (input).
ii. Multifactor productivity: Indicates the ratio of goods and services produced (outputs)
to many or all resources (inputs)

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Multifactor productivity = Output/(Labor + Material + Energy + Capital + Miscellaneous)
Current Challenges in Operations Management
1. Globalization: The rapid decline in the cost of communication and transportation has
made markets global. Similarly, resources in the form of capital, materials, talent, and
labour are also now global.
2. Supply-chain partnering: Shorter product life cycles, demanding customers, and fast
changes in technology, materials, and processes require supply-chain partners to be in
tune with the needs of end users. And because suppliers may be able to contribute
unique expertise, operations managers are outsourcing and building long-term
partnerships with critical players in the supply chain
3. Sustainability: means designing green products and packaging that minimize resource
use, can be recycled or re used, and are generally environmentally friendly.
4. Rapid product development: Technology combined with rapid international
communication of news, entertainment, and lifestyles is dramatically chopping away
at the life span of products.
5. Mass customization: In a world where consumers are increasingly aware of innovation
and options, substantial pressure is placed on firms to respond in a creative way. And
OM must rapidly respond with product designs and flexible production processes that
cater to the individual whims of consumers. The goal is to produce customized
products, whenever and wherever needed.
6. Lean operations: Lean can be thought of as the driving force in a well-run operation,
where the customer is satisfied, employees are respected, and waste does not exist.
The theme of this text is to build organizations that are more efficient, where
management creates enriched jobs that help employees engage in continuous
improvement, and where goods and services are produced and delivered when and
where the customer desires them.

Operations strategy
The process of making key operations decisions that are consistent with the overall
strategic objectives of the organization.

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 Fig6: Achieving Competitive Strategy through Operations
A strategic planning exercise enables an organization to respond to the needs of the market
in the most effective manner by:
(i) Identifying products and services that are likely to succeed in the marketplace.
(ii) Aligning the resources and activities in the organization to deliver these products
and services.
The process of formulating an appropriate operations strategy involves a sequential and
structured set of activities. These can be grouped into three broad steps. The first step is to
identify the strategic options for sustaining competitive advantage. Once these options have
been identified, the overall corporate strategy can be devised on the basis of firm-level
strengths and weaknesses. The corporate strategy provides the basis for arriving at the
appropriate operations strategy for the organization.
1. understanding the competitive dynamics at the marketplace,
2. Identifying order-winning and order-qualifying attributes.
3. Deciding on strategic options for sustaining competitive advantage
4. Matching the strategic options with the resources, constraints, values, and objectives
of the organization to arrive at the overall corporate strategy
5. Developing the operations strategy based on the corporate strategy
6. Using the operations strategy to select appropriate options for configuring an
operations system and establishing relevant measures for operational excellence

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 Fig7 :Strategy Formulation Process
▪ Order-qualifying attributes
The attributes that customers expect in the product or service they consider for buying
▪ Order-winning attributes
Attributes that have the potential to sufficiently motivate the customer to buy the product.
▪ Operational excellence Measures
Provide the critical linkage between order winning and order qualifying attributes
identified through the strategic planning exercise and the choices made in the operations.
▪ Issues in Operations Strategy
The operations manager needs to understand that the firm is operating in a system with
many other external factors. These factors range from economic, to legal, to cultural. They
influence strategy development and execution and require constant scanning of the
environment. The firm itself is also undergoing constant change. Everything from
resources to technology, to product life cycles is in flux. Consider the significant changes
required within the firm as its products move from introduction, to growth, to maturity,
and to decline. These internal changes, combined with external changes, require
strategies that are dynamic.

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 Fig8: Strategy and Issues during product life cycle
• Resource’s view : A method managers use to evaluate the resources at their
disposal and manage or alter them to achieve competitive advantage.
• Value-chain analysis : A way to identify those elements in the product/service
chain that uniquely add value.
• Porter Five forces model: A method of analysing the five forces in the competitive
environment.
Strategy Development and Implementation
• SWOT analysis A method of determining internal strengths and weaknesses and
external opportunities and threats.
• SWOT analysis is a formal review of internal strengths and weaknesses and external
opportunities and threats. Beginning with SWOT analyses, organizations position
themselves, through their strategy, to have a competitive advantage.
• Beginning with SWOT analyses, organizations position themselves, through their
strategy, to have a competitive advantage. A firm may have excellent design skills or
great talent at identifying outstanding locations. However, it may recognize limitations
of its manufacturing process or in finding good suppliers. The idea is to maximize

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 opportunities and minimize threats in the environment while maximizing the
advantages of the organization’s strengths and minimizing the weaknesses.

Key Success Factors and Core Competencies

Fig 9: Strategy Development Process

Fig10: Activity Mapping of Southwest Airlines- Low cost competitive strategy

➢ To achieve a low-cost competitive advantage, Southwest has identified a number
of key success factors (connected by red arrows) and support activities (shown by
blue arrows). As this figure indicates, Southwest’s low-cost strategy is highly
dependent on a very well-run operations function.
The operations manager’s job is to implement an OM strategy, provide competitive
advantage, and increase productivity.

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Global Operations Strategy Options
• International strategy: A strategy in which global markets are penetrated using exports
and licenses.
• Multidomestic strategy: A strategy in which operating decisions are decentralized to
each country to enhance local responsiveness
• Global strategy: A strategy in which operating decisions are centralized, and
headquarters coordinates the standardization and learning between facilities.

Fig11: Four International Operations Strategies

Project Planning
Projects can be defined as a series of related tasks directed toward a major output. In
some firms a project organization is developed to make sure existing programs continue
to run smoothly on a day-to-day basis while new projects are successfully completed.
Work breakdown structure (WBS) A hierarchical description of a project into more and
more detailed components.
Project Scheduling
• Project scheduling involves sequencing and allotting time to all project activities. At this
stage, managers decide how long each activity will take and compute the resources
needed at each stage of production. Managers may also chart separate schedules for

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 personnel needs by type of skill (management, engineering, or pouring concrete, for
example) and material needs.
• Gantt charts Planning charts used to schedule resources and allocate time.
Project Management Techniques: PERT and CPM
Program evaluation and review technique (PERT) A project management technique that
employs three-time estimates for each activity.
Critical path method (CPM) A project management technique that uses only one time
factor per activity.
The Framework of PERT and CPM PERT and CPM both follow six basic
steps:
1. Define the project and prepare the work breakdown structure.
2. Develop the relationships among the activities. Decide which activities must precede
and which must follow others.
3. Draw the network connecting all the activities.
4. Assign time and/or cost estimates to each activity.
5. Compute the longest time path through the network. This is called the critical path .
6. Use the network to help plan, schedule, monitor, and control the project
• Activity-on-node (AON): A network diagram in which nodes designate activities.
• Activity-on-arrow (AOA): A network diagram in which arrows designate activities.
• Critical path: analysis A process that helps determine a project schedule.
• Optimistic time The “best” activity completion time that could be obtained in a PERT
network.
• Pessimistic time The “worst” activity time that could be expected in a PERT network.
• Most likely time The most probable time to complete an activity in a PERT network.

Forecasting
➢ The art and science of predicting future events.
➢ Forecasting may involve taking historical data (such as past sales) and projecting them
into the future with a mathematical model. It may be a subjective or an intuitive
prediction (e.g., “this is a great new product and will sell 20% more than the old one”).
Forecasting Time Horizons A forecast is usually classified by the future time horizon that it
covers. Time horizons fall into three categories:
• Short-range forecast: This forecast has a time span of up to 1 year but is generally less
than 3 months. It is used for planning purchasing, job scheduling, workforce levels, job
assignments, and production levels.
• Medium-range forecast: A medium-range, or intermediate, forecast generally spans
from 3 months to 3 years. It is useful in sales planning, production planning and
budgeting, cash budgeting, and analysis of various operating plans.

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 • Long-range forecast: Generally, 3 years or more in time span, long-range forecasts are
used in planning for new products, capital expenditures, facility location or expansion,
and research and development
Types of Forecasts
• Economic forecasts Planning indicators that are valuable in helping organizations
prepare medium- to long-range forecasts.
• Technological forecasts Long-term forecasts concerned with the rates of technological
progress.
• Demand forecasts Projections of a company’s sales for each time period in the
planning horizon
Seven Steps in the Forecasting System
Forecasting follows seven basic steps. We use Disney World, the focus of this chapter’s
Global Company Profile , as an example of each step:
1. Determine the use of the forecast: Disney uses park attendance forecasts to drive
decisions about staffing, opening times, ride availability, and food supplies.
2. Select the items to be forecasted: For Disney World, there are six main parks. A
forecast of daily attendance at each is the main number that determines labor,
maintenance, and scheduling.
3. Determine the time horizon of the forecast: Is it short, medium, or long term? Disney
develops daily, weekly, monthly, annual, and 5-year forecasts.
4. Select the forecasting model(s): Disney uses a variety of statistical models that we shall
discuss, including moving averages, econometrics, and regression analysis. It also
employs judgmental, or nonquantitative, models.
5. Gather the data needed to make the forecast: Disney’s forecasting team employs 35
analysts and 70 field personnel to survey 1 million people/businesses every year.
Disney also uses a firm called Global Insights for travel industry forecasts and gathers
data on exchange rates, arrivals into the U.S., airline specials, Wall Street trends, and
school vacation schedules.
6. Make the forecast.
7. Validate and implement the results: At Disney, forecasts are reviewed daily at the
highest levels to make sure that the model, assumptions, and data are valid. Error
measures are applied; then the forecasts are used to schedule personnel down to 15-
minute intervals.
Forecasting Approaches
There are two general approaches to forecasting
1. Quantitative forecasts : Forecasts that employ mathematical modelling to forecast
demand.
2. Qualitative forecasts: Forecasts that incorporate such factors as the decision maker’s
intuition, emotions, personal experiences, and value system.

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Types of Qualitative Methods
• Jury of executive opinion: A forecasting technique that uses the opinion of a small
group of high-level managers to form a group estimate of demand
• Delphi method :A forecasting technique using a group process that allows experts to
make forecasts.
• Sales force composite: A forecasting technique based on salespersons’ estimates of
expected sales.
• Market survey :A forecasting method that solicits input from customers or potential
customers regarding future purchasing plans.
Types Quantitative Methods
Five quantitative forecasting methods, all of which use historical data, are described in this
chapter. They fall into two categories:
• Time series forecasting model : forecasting technique that uses a series of past data
points to make a forecast.
1. Naive approach: A forecasting technique that assumes that demand in the next period
is equal to demand in the most recent period
2. Moving averages: A forecasting method that uses an average of the n most recent
periods of data to forecast the next period.
3. Exponential smoothing: A weighted-moving-average forecasting technique in which
data points are weighted by an exponential function.
• Associative model
1. Trend projection
2. Linear regression
Measuring Forecast Error:
The overall accuracy of any forecasting model—moving average, exponential smoothing, or
other—can be determined by comparing the forecasted values with the actual or observed
values.
Forecast error = Actual demand- Forecast value
1. Mean absolute deviation (MAD) A measure of the overall forecast error for a model
2. Mean squared error (MSE) The average of the squared differ ences between the
forecasted and observed values
3. Mean absolute percent error (MAPE) The average of the absolute differences
between the forecast and actual values, expressed as a percent of actual values.

Design of Goods and Services

Product Strategy Options Support Competitive Advantage
A world of options exists in the selection, definition, and design of products. Product
selection is choosing the good or service to provide customers or clients. For instance,

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 hospitals specialize in various types of patients and medical procedures. A hospital’s
management may decide to operate a general-purpose hospital or a maternity hospital or,
as in the case of the Canadian hospital Shouldice, to specialize in hernias. Hospitals select
their products when they decide what kind of hospital to be. Numerous other options exist
for hospitals, just as they exist for Taco Bell and Toyota. Service organizations like Shouldice
Hospital differentiate themselves through their product. Shouldice differentiates itself by
offering a distinctly unique and high-quality product.
Product Life Cycles
Products are born. They live and they die. They are cast aside by a changing society. It
may be helpful to think of a product’s life as divided into four phases. Those phases are
introduction, growth, maturity, and decline.
Life Cycle and Strategy
Just as operations managers must be prepared to develop new products, they must also
be prepared to develop strategies for new and existing products. Periodic examination
of products is appropriate because strategies change as products move through their life
cycle.
Successful product strategies require determining the best strategy for each product
based on its position in its life cycle. A firm, therefore, identifies products or families of
products and their position in the life cycle. Let us review some strategy options as
products move through their life cycles.

Product-by-Value Analysis
A list of products, in descending order of their individual dollar contribution to the
firm, as well as the total annual dollar contribution of the product.

Generating New Products

Aggressive new product development requires that organizations build structures
internally that have open communication with customers, innovative product
development cultures, aggressive R&D, strong leadership, formal incentives, and training
1. Understanding the customer is the premier issue in new-product development.
2. Economic change brings increasing levels of affluence in the long run but economic
cycles and price changes in the short run
3. Sociological and demographic change may appear in such factors as decreasing family
size. This trend alters the size preference for homes, apartments, and automobiles
4. Technological change makes possible everything from smart phones to iPads to
artificial hearts
5. Political and legal change brings about new trade agreements, tariffs, and government
requirements.

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 6. Other changes may be brought about through market practice, professional standards,
suppliers, and distributors.

Quality function deployment (QFD)

▪ A process for determining customer requirements (customer “wants”) and
translating them into the attributes (the “how’s”) that each functional area can
understand and act on.
▪ House of quality A part of the quality function deployment process that utilizes a
planning matrix to relate customer “wants” to “how” the firm is going to meet
those “wants”.

Value Analysis
A review of successful products that takes place during the production process.
Value analysis seeks improvements that lead to either a better product, or a product
made more economically, or a product with less environmental impact
• Basic Documents for Production
1. Assembly drawing An exploded view of the product.
2. Assembly chart A graphic means of identifying how components flow into
subassemblies and final products.

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 3. Route sheet A listing of the operations necessary to produce a component with the
material specified in the bill of material.
4. Work orders an instruction to make a given quantity of a particular item.
5. Engineering change notice (ECN) A correction or modification of an engineering
drawing or bill of material.
6. Configuration management A system by which a product’s planned and changing
components are accurately identified.
7. Product life-cycle management (PLM) Software programs that tie together many
phases of product design and manufacture.

Defining Quality
• The ability of a product or service to meet customer needs.
• Detecting and correcting mistakes in the product such that it meets compliance
standards.
• Preventing defects in the first place through manufacturing controls and product
design such that it meets performance standards.
• The operations manager’s objective is to build a total quality management system that
identifies and satisfies customer needs.
•
ISO 9000 International Quality Standards
ISO 9000 is the quality standard with international recognition. Its focus is to enhance
success through eight quality management principles
1. Top management leadership
2. customer satisfaction
3. continual improvement,
4. involvement of people
5. process analysis
6. use of data-driven decision making
7. A systems approach to management
8. Mutually beneficial supplier relationships
Cost of Quality (COQ)
The cost of doing things wrong that is, the price of nonconformance.
Four major categories of costs are associated with quality. Called the cost of quality (COQ)
, they are:
• Prevention costs: costs associated with reducing the potential for defective parts or
services (e.g., training, quality improvement programs).
• Appraisal costs: costs related to evaluating products, processes, parts, and services
(e.g., testing, labs, inspectors).

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 • Internal failure costs: costs that result from production of defective parts or services
before delivery to customers (e.g., rework, scrap, downtime).
• External failure costs: costs that occur after delivery of defective parts or services (e.g.,
rework, returned goods, liabilities, lost goodwill, costs to society).

Six Sigma
Six Sigma is a data-driven methodology aimed at reducing defects to improve quality
by achieving near-perfect processes—typically aiming for no more than 3.4 defects
per million opportunities.

The term Six Sigma, popularized by Motorola, Honeywell, and General Electric, has
two meanings in TQM. In a statistical sense, it describes a process, product, or
service with an extremely high capability (99.9997% accuracy).

The second TQM definition of Six Sigma is a program designed to reduce defects to
help lower costs, save time, and improve customer satisfaction. Six Sigma is a
comprehensive system a strategy, a discipline, and a set of tools—for achieving and
sustaining business success

It is a discipline because it follows the formal Six Sigma Improvement Model known
as DMAIC. This five-step process improvement model:

a. Defines the project’s purpose, scope, and outputs and then identifies the
required process information, keeping in mind the customer’s definition of
quality;
b. Measures the process and collects data.
c. Analyses the data, ensuring repeatability (the results can be duplicated) and
reproducibility (others get the same result).
d. Improves, by modifying or redesigning, existing processes and procedures;
and
e. Controls the new process to make sure performance levels are maintained

Core Objective:
To improve process capability by minimizing variations and eliminating defects,
thereby enhancing customer satisfaction and business performance.

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Total Quality Management
Management of an entire organization performs so that it excels in all aspects of products
and services that are important to the customer.
Here are seven concepts that make up the heart of an effective TQM program.
1. Continuous improvement
2. Six Sigma
3. employee empowerment.
4. Benchmarking
5. just-in-time (JIT)
6. Taguchi concepts
7. knowledge of TQM tools

Seven Quality Control tools

1. Check Sheets
2. Scatter Diagrams
3. Cause-and-Effect Diagrams
4. Pareto Charts
5. Flowcharts
6. Histograms
7. Control charts

Statistical Process Control (SPC)

A process used to monitor standards by taking measurements and corrective action as a
product or service is being produced.
• Control chart:
A graphical presentation of process data over time. A process is said to be operating in
statistical control when the only source of variation is common (natural) causes. The
process must first be brought into statistical control by detecting and eliminating
special (assignable) causes of variation. The objective of a process control system is to
provide a statistical signal when assignable causes of variation are present.
• Process Capability
The ability of a process to meet design specifications, which are set by engineering
design or customer requirements, is called process capability.

Process Strategy
An organization’s approach to transforming resources into goods and services.
The objective is to create a process that can produce offerings that meet customer
requirements within cost and other managerial constraints. Four process strategies:

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 1. Process focus: A production facility organized around processes to facilitate low
volume, high-variety production.
2. Repetitive focus: A product-oriented production process that uses modules. Modules
are parts or components of a product previously prepared, often in a continuous
process.
3. Product focus: A facility organized around products; a product-oriented, high-volume,
low-variety process.
4. Mass customization: Rapid, low-cost production that caters to constantly changing
unique customer desires.

Fig12: Process selection with volume and variety

Fig13: Comparison of Characteristics of four types of Process

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Process Analysis and Design
• Flowchart A drawing used to analyze movement of people or material.
• Time-function mapping (or process mapping) A flowchart with time added on the
horizontal axis.
• Process charts Charts that use symbols to analyze the movement of people or material.
Value-stream mapping (VSM)
• A process that helps managers understand how to add value in the flow of material
and information through the entire production process.
• A lean management technique used to analyze, design, and optimize the flow of
materials and information in a process. It helps identify waste (Muda) and
inefficiencies, improving overall productivity.
Key Elements of VSM:
• Current State Mapping – Visualizing the existing process flow, lead times, and
bottlenecks.
• Future State Mapping – Designing an improved process with reduced waste and
enhanced efficiency.
• Kaizen Opportunities – Identifying areas for continuous improvement.
Benefits:
• Reduces lead time and operational waste
• Improves process visibility and efficiency
• Enhances customer value by streamlining workflows

Capacity
Capacity is the “throughput,” or the number of units a facility can hold, receive, store, or
produce in a given time. Capacity decisions often determine capital requirements and
therefore a large portion of fixed cost. Capacity also determines whether demand will be
satisfied or whether facilities will be idle.
Design capacity
Design capacity is the maximum theoretical output of a system in a given period under
ideal conditions. It is normally expressed as a rate, such as the number of tons of steel
that can be produced per week, per month, or per year.
Effective capacity
Effective capacity is the capacity a firm expects to achieve given the current operating
constraints. Effective capacity is often lower than design capacity because the facility
may have been designed for an earlier version of the product or a different product
mix than is currently being produced.
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 • Utilization: Actual output as a percent of design capacity.
• Efficiency Actual output as a percent of effective capacity.
• Bottleneck: The limiting factor or constraint in a system
• Bottleneck time the process time of the longest (slowest) process, i.e., the bottleneck.
• Process time: The time to produce a unit (or specified batch of units) at a workstation.
• Throughput time
the time it takes a unit to go through production from start to end, with no waiting.
(Throughput time describes the behaviour in an empty system

Theory of Constraints
• The theory of constraints (TOC) has been popularized by the book The Goal: A
Process of Ongoing Improvement, by Goldratt and Cox
• A body of knowledge that deals with anything that limits an organization’s ability
to achieve its goals. Recognizing and managing these limitations through a five-
step process is the basis of TOC.
STEP 1: Identify the constraints.
STEP 2: Develop a plan for overcoming the identified constraints.
STEP 3: Focus resources on accomplishing Step 2.
STEP 4: Reduce the effects of the constraints by offloading work or by expanding
capability. Make sure that the constraints are recognized by all those who can have an
impact on them.
STEP 5: When one set of constraints is overcome, go back to Step 1 and identify new
constraints

Break-Even Analysis
Break-even analysis is the critical tool for determining the capacity a facility must have to
achieve profitability. The objective of break-even analysis is to find the point, in dollars and
units, at which costs equal revenue. This point is the break-even point.

Layout Strategies
The objective of layout strategy is to develop an effective and efficient layout that will
meet the firm’s competitive requirements
Types of Layout
A. Office layout: Positions workers, their equipment, and spaces/offices to provide for
movement of information.
B. Retail layout: Allocates display space and responds to customer behaviour.
C. Warehouse layout: Addresses trade-offs between space and material handling.

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 D. Fixed-position layout: Addresses the layout requirements of large, bulky projects such
as ships and buildings.
E. Process-oriented layout: Deals with low-volume, high-variety production (also called
“job shop,” or intermittent production).
F. Work-cell layout: Arranges machinery and equipment to focus on production of a
single product or group of related products.
G. Product-oriented layout: Seeks the best personnel and machine utilization in
repetitive or continuous production.
Cycle time
The maximum time that a product is allowed at each workstation.
Cycle time = Production time available per day/Units required per day

Supply Chain Management

• Describes the coordination of all supply chain activities, starting with raw materials
and ending with a satisfied customer. Thus, a supply chain includes suppliers;
manufacturers and/or service providers; and distributors, wholesalers, and/or retailers
who deliver the product and/or service to the final customer
• The objective of supply chain management is to structure the supply chain to maximize
its competitive advantage and benefits to the ultimate consumer
• Make-or-buy decision A choice between producing a component or service in-house
or purchasing it from an outside source.
• Outsourcing Transferring a firm’s activities that have traditionally been internal to
external suppliers.
• Vertical integration Developing the ability to produce goods or services previously
purchased or actually buying a supplier or a distributor.
Bullwhip effect
The increasing fluctuation in orders that often occurs as orders move through the supply
chain.
Drop shipping
The supplier will ship directly to the end consumer, rather than to the seller, saving both
time and reshipping costs. Other cost-saving measures include the use of special
packaging, labels, and optimal placement of labels and bar codes on containers.
Closed-loop supply chain
A supply chain designed to optimize both forward and reverse flows.

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Inventory Management
The objective of inventory management is to strike a balance between inventory
investment and customer service.
Functions of Inventory
a. To provide a selection of goods for anticipated customer demand and to separate the
firm from fluctuations in that demand. Such inventories are typical in retail
establishments.
b. To decouple various parts of the production process. For example, if a firm’s supplies
fluctuate, extra inventory may be necessary to decouple the production process from
suppliers.
c. To take advantage of quantity discounts, because purchases in larger quantities may
reduce the cost of goods or their delivery.
d. To hedge against inflation and upward price changes.
Types of Inventory
I. Raw material inventory Materials that are usually purchased but have yet to enter the
manufacturing process.
II. Work-in-process (WIP) inventory Products or components that are no longer raw
materials but have yet to become finished products.
III. Maintenance/repair/operating (MRO) inventory MROs are inventories devoted to
maintenance/repair/operating supplies necessary to keep machinery and processes
productive. They exist because the need and timing for maintenance and repair of
some equipment are unknown.
IV. Finished goods inventory An end item ready to be sold, but still an asset on the
company’s books.

➢ Managing Inventory: ABC analysis A method for dividing on-hand inventory into three
classifications based on annual dollar volume.
Inventory Models
Independent vs. Dependent Demand
Inventory control models assume that demand for an item is either independent of or
dependent on the demand for other items. For example, the demand for refrigerators is
independent of the demand for toaster ovens. However, the demand for toaster oven
components is dependent on the requirements of toaster ovens.
• Holding cost: The cost to keep or carry inventory in stock
• Ordering cost: The cost of the ordering process , includes costs of supplies, forms,
order processing, purchasing, clerical support, and so forth.
• Setup cost: The cost to prepare a machine or process for production.
• Setup time: The time required to prepare a machine or process for production.

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Inventory Models for Independent Demand
I. Basic economic order quantity (EOQ) model
The economic order quantity (EOQ) model is one of the most commonly used
inventory-control techniques. This technique is relatively easy to use but is based on
several assumptions:
• Demand for an item is known, reasonably constant, and independent of
decisions for other items.
• Lead time—that is, the time between placement and receipt of the order—is
known and consistent.
• Receipt of inventory is instantaneous and complete. In other words, the
inventory from an order arrives in one batch at one time.
• Quantity discounts are not possible.
• The only variable costs are the cost of setting up or placing an order (setup or
ordering cost) and the cost of holding or storing inventory over time (holding
or carrying cost). These costs were discussed in the previous section.
• Stockouts (shortages) can be completely avoided if orders are placed at the
right time.
II. Production order quantity model
An economic order quantity technique applied to production orders
III. Quantity discount model
A reduced price for items purchased in large quantities
Perpetual inventory system:
Perpetual Inventory is a system where inventory records are updated continuously as and
when transactions occur—such as receipts, issues, or returns

Material requirements planning (MRP) :

A dependent demand technique that uses a bill-of-material, inventory, expected
receipts, and a master production schedule to determine material requirements.
Master production schedule (MPS):
A timetable that specifies what is to be made (usually finished goods) and when.
Bill of material (BOM) :
A listing of the components, their description, and the quantity of each required to
make one unit of a product

Lean Operations
• Eliminates waste through continuous improvement and focus on exactly what the
customer wants.

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 • Supply the customer with exactly what the customer wants when the customer wants
it, without waste, through continuous improvement. Lean operations are driven by
workflow initiated by the “pull” of the customer’s order.

Just-in-time (JIT) systems

• The core philosophy of JIT systems is to provide an organizational framework to
continuously reveal opportunities for the elimination of non-value-added activities.
• JIT is also known as a zero-inventory system.

Toyota Production System (TPS)

TPS is a production system developed by Toyota that focuses on the elimination of waste,
continuous improvement (Kaizen), and producing high-quality products efficiently through
Just-in-Time and Jidoka principles.

Eliminate Waste
Ohno’s seven wastes are: also called as (TIMWOOD)
• Overproduction: Producing more than the customer orders or producing early (before
it is demanded) is waste.
• Queues: Idle time, storage, and waiting are wastes (they add no value).
• Transportation: Moving material between plants or between work centres and
handling it more than once is waste.
• Inventory: Unnecessary raw material, work-in-process (WIP), finished goods, and
excess operating supplies add no value and are wastes.
• Motion: Movement of equipment or people that adds no value is waste.
• Overprocessing: Work performed on the product that adds no value is waste.
• Defective product: Returns, warranty claims, rework, and scrap are wastes.

5S Methodology
i. Sort/segregate: Keep what is needed and remove everything else from the work area;
when in doubt, throw it out
ii. Simplify/straighten: Arrange and use methods analysis tools to improve workflow and
reduce wasted motion.
iii. Shine/sweep: Clean daily; eliminate all forms of dirt, contamination, and clutter from
the work area.
iv. Standardize: Remove variations from the process by developing standard operating
procedures and checklists. Standardize equipment and tooling so that cross-training
time and cost are reduced.
v. Sustain/self-discipline: Review periodically to recognize efforts and to motivate to
sustain progress. Use visuals wherever possible to communicate and sustain progress.
vi. Safety: Build good safety practices into the preceding five activities.

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vii. Support/maintenance: Reduce variability, unplanned downtime, and costs. Integrate
daily shine tasks with preventive maintenance.

World-Class Operations
World-class operations refer to the highest level of operational excellence that
organizations strive to achieve. Companies that excel in operations management
implement best practices, utilize advanced technologies, and continuously improve
their processes to enhance efficiency, quality, and customer satisfaction.
Characteristics of World-Class Operations
1. Customer-Centric Approach – Prioritizing customer satisfaction by delivering high-
quality products and services efficiently.
2. Lean and Agile Operations – Reducing waste (Lean) and responding quickly to changes
in demand (Agile).
3. Total Quality Management (TQM) – Focusing on continuous improvement and zero
defects.
4. Just-in-Time (JIT) Production – Minimizing inventory costs by producing only what is
needed.
5. Sustainable and Green Practices – Incorporating environmentally friendly production
methods.
6. Technology and Innovation – Utilizing Industry 4.0 technologies such as automation,
AI, and IoT.
7. Employee Empowerment – Training and involving employees in decision-making
processes.
8. Global Supply Chain Excellence – Efficiently managing a global network of suppliers,
manufacturers, and distributors.
Examples of World-Class Operations:
• Toyota Production System (TPS) – Pioneer of lean manufacturing and JIT.
• Amazon’s Fulfillment Centers – Leveraging robotics and AI to optimize supply chain
operations.
• Tesla’s Gigafactories – High-tech production facilities integrating automation and
sustainability.

Japanese Terminologies in Operations

Kaizen – Continuous Improvement
Meaning:
Kaizen means "continuous improvement" and focuses on making small, incremental

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 changes that collectively result in significant enhancements in processes, quality, and
efficiency.
Principles of Kaizen:
• Encourages every employee to contribute to improvements.
• Reduces waste and inefficiencies.
• Fosters a culture of teamwork and problem-solving.
• Utilizes PDCA (Plan-Do-Check-Act) cycle for systematic improvements.
Example:
Toyota applies Kaizen by continuously refining its production process, allowing workers
to suggest improvements that lead to fewer defects and higher efficiency.
Kanban – Visual Workflow Management
Meaning:
Kanban, meaning “signboard,” is a visual management system for tracking production
and workflow.
Principles of Kanban:
• Uses visual cues (cards, digital boards) to signal tasks in progress.
• Helps manage work-in-progress (WIP) inventory.
• Reduces overproduction by ensuring just-in-time (JIT) production.
Example:
A software development team using a Kanban board (like Trello or Jira) to track tasks
from "To Do" to "In Progress" to "Done."
Muda Waste Elimination
Meaning:
Muda refers to activities that do not add value to the customer and should be
eliminated.
Types of Muda (7 Wastes in Lean Manufacturing):
1. Overproduction: Producing more than what is needed.
2. Waiting: Delays due to bottlenecks, machine downtime, etc.
3. Unnecessary Transportation: Moving products more than necessary.
4. Overprocessing: Doing extra work that does not add value.
5. Excess Inventory: Holding too much stock.
6. Unnecessary Motion: Excessive movement of workers or machines.
7. Defects: Errors that require rework or scrapping.
Example:
In the Toyota Production System (TPS), employees identify and eliminate muda to
optimize production flow.
Heijunka– Production Levelling

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 Meaning:
Heijunka ensures a balanced and steady workflow by leveling production schedules to
prevent fluctuations.
Benefits:
• Prevents overburdening workers (Muri) and machines.
• Reduces excess inventory and waiting times.
• Improves efficiency by maintaining a stable production rate.
Example:
An automobile manufacturer producing different car models in small, steady batches
instead of large, infrequent production runs.
Poka-Yoke– Error Proofing
Meaning:
Poka-Yoke means “mistake-proofing” and involves designing processes in a way that
prevents human errors.
Types of Poka-Yoke:
• Prevention-Based: Eliminates the possibility of an error occurring.
• Detection-Based: Alerts the worker when an error is about to happen.
Example:
• A USB drive that can only be inserted in one direction.
• A car not starting unless the seatbelt is fastened.
Jidoka – Automation with Human Touch
Meaning:
Jidoka enables machines to detect and correct problems automatically, stopping the
process if a defect is detected.
Principles of Jidoka:
• Machines are designed to identify abnormalities and halt production.
• Workers investigate and fix the root cause before resuming operations.
• Prevents defective products from moving to the next stage.
Example:
A car assembly line where a robotic sensor detects misalignment and stops the
production line to avoid producing faulty units.
Andon – Visual Control System
Meaning:
Andon is a visual feedback system that signals production status and alerts workers to
problems.
Usage in Factories:
• Green Light: Normal operation.
• Yellow Light: Attention required.
• Red Light: Problem detected – stop production.

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 Example:
In an automobile factory, a worker can pull an Andon cord to halt production if they spot
a defect, ensuring quality is maintained.
5S Methodology – Workplace Organization
A structured method for workplace efficiency and cleanliness:
1. Seiri (Sort): Remove unnecessary items.
2. Seiton (Set in Order): Organize tools and equipment.
3. Seiso (Shine): Clean the work area.
4. Seiketsu (Standardize): Establish best practices.
5. Shitsuke (Sustain): Maintain discipline.
Example:
A hospital applies 5S to keep medical instruments organized, reducing search time and
improving patient care.
Hoshin Kanri – Policy Deployment
Meaning:
Hoshin Kanri aligns company-wide goals with daily operations through strategic planning.
Process:
• Senior management sets long-term goals.
• Goals are communicated and broken down into smaller objectives.
• Progress is reviewed and adjusted.
Example:
A manufacturing firm implementing Hoshin Kanri to align its sustainability goals with
operational efficiency strategies.
Gemba – The Real Place
Meaning:
Gemba means "the actual place" where value is created (e.g., factory floor, retail store).
Gemba Walk:
Managers and executives visit the Gemba to observe operations firsthand and interact
with workers to identify improvement opportunities.
Example:
A CEO of a logistics company visiting a warehouse to understand workflow inefficiencies.
Genchi Genbutsu – Go and See
Meaning:
Genchi Genbutsu emphasizes direct observation rather than relying on reports or second-
hand information.
Example:
A quality control manager personally inspecting a production line instead of relying solely
on data reports

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Hansei – Reflection and Self-Correction
Meaning:
Hansei is the practice of reflecting on mistakes and making necessary improvements.
Application:
• Encourages self-awareness and learning.
• Identifies areas for personal and organizational improvement.
Example:
After a product recall, a company holds a Hansei meeting to analyze the root cause and
prevent future occurrences.

News Article Analysis

Zepto Looks at ways to build stronger cold chain logistics

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Key Takeaways
➢ Strengthening Cold Chain: Zepto is improving its cold supply chain logistics to enhance
delivery speed and freshness of perishables.
➢ Challenges: High temperature control costs, wastage, and logistics efficiency remain
key hurdles.
➢ Competitive Landscape: Companies like Blinkit, Swiggy Instamart, and Zepto are racing
to optimize fresh food deliveries.
➢ Strategic Moves: Zepto is leveraging technology, automation, and expert
collaborations to improve margins.
Future Outcomes
➢ Better Cold Chain Infrastructure: AI-driven tracking and temperature-controlled
storage will enhance efficiency.
➢ Quick Commerce Expansion: Improved logistics will allow Zepto to offer more fresh
and frozen products.
➢ Sustainability Focus: More eco-friendly packaging, EV deliveries, and waste reduction
strategies.
➢ More Investments & Collaborations: Increased funding and strategic alliances with
logistics partners.
➢ Regulatory Changes: Possible new government policies for cold chain logistics and
quality control.

Tier 2 & 3 cities emerge growth drivers in India’s

warehouse sector

Key Insights
1. Rapid Expansion in Warehousing
➢ India's total warehousing stock reached 533.1 million sq. ft., with Tier 2 & 3
cities contributing 100 million sq. ft. (18.7%).
➢ These cities are emerging as key growth drivers due to increasing
industrialization and e-commerce penetration.

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 2. Factors Driving Growth in Tier 2 & 3 Cities
➢ Infrastructure Development: Government investments in logistics parks,
highways, and industrial corridors are improving connectivity.
➢ Cost Efficiency: Warehousing costs in Tier 2 & 3 cities are lower than in Tier 1
cities, making them attractive for businesses.
3. Impact on the Supply Chain & Economy
➢ Strengthening regional supply chains reduces dependency on metro cities.
➢ Growth in warehousing leads to job creation and economic development in
smaller cities.
Future Outcomes
1. Further Warehousing Expansion
➢ Tier 2 & 3 cities will continue to attract investments, with an expected rise in
warehousing demand.
➢ More automated and tech-driven warehouses will emerge.
2. Increased Investments in Logistics & Infrastructure
➢ Public and private players will invest in logistics parks and smart warehouses.
➢ Rail, road, and port connectivity will improve, boosting efficiency.
3. Rising Demand for Skilled Workforce
➢ The logistics and warehousing sector will create more jobs, increasing demand
for supply chain professionals.
➢ More training programs will be introduced to upskill workers.
4. Strengthened E-commerce & Manufacturing Sectors
➢ Faster deliveries and cost-effective warehousing will boost e-commerce
penetration in rural areas.
➢ Make in India and domestic manufacturing will benefit from improved supply
chains.

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Development of Semiconductors Manufacturing Hub in
Dholera city

Causes
Strategic Push for Semiconductor Independence
➢ India aims to reduce dependence on semiconductor imports, ensuring supply chain
security for electronics and automotive industries.
➢ Aligns with the "Atmanirbhar Bharat" initiative for self-reliance in technology and
manufacturing.
Government Incentives & Fiscal Support
➢ The ISM provides financial incentives under the Semiconductor India Program to
attract investments in semiconductor manufacturing.
➢ Fiscal support agreement ensures capital assistance for setting up the fab unit.
Growing Demand for Semiconductors
➢ India is one of the fastest-growing consumer electronics and automotive markets.
➢ Rising demand for AI, IoT, and electric vehicles (EVs) increases the need for domestic
chip production.
Development of 'Glocal' Strategies (Global + Local)
➢ Local businesses adapt to international preferences (e.g., Taiwanese and Japanese
food hubs).

Effects
Operational Efficiency & Cost Reduction for Indian Industries
➢ Domestic semiconductor production reduces import costs and logistics risks.
➢ Enhances supply chain efficiency for electronics, automotive, and telecom industries.

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Foreign Direct Investment (FDI) Attraction & Economic Growth
➢ Improved investor confidence in India’s semiconductor sector.
➢ Strengthens India’s GDP contribution from manufacturing and exports.

Understanding the jobs in Supply Chain Management

Growing Demand for SCM Professionals

Businesses are expanding beyond traditional boundaries, leading to a higher demand for SCM
experts. The rise in e-commerce and online shopping has further accelerated the need for
efficient supply chain operations.

SCM as the Backbone of New-Age Business

Organizations are actively seeking professionals with expertise in transportation, logistics, and
supply chain management. Companies rely on streamlined data management, inventory
tracking, and advanced logistics for operational efficiency.

Career Opportunities in SCM

There are multiple career paths available, including roles such as Supply Chain Manager,
Materials Analyst, Purchase Manager, Strategic Planner, and Warehouse Manager. Sectors like
e-commerce, retail, FMCG, manufacturing, healthcare, and automobiles are creating demand
for SCM professionals.

Future Outcomes Based on the News

Increased Job Creation in SCM
The industry could become a $1.3 trillion sector, leading to more job opportunities in logistics,
inventory management, and supply chain analytics. Companies will invest in talent
development programs to bridge the skill gap.
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Rise of Technology-Driven SCM Solutions
Artificial Intelligence (AI), the Internet of Things (IoT), and blockchain will play a critical role in
enhancing supply chain efficiency. Businesses will focus on real-time tracking, predictive
analytics, and automation to reduce costs and improve service levels.

Adani and UAE’s Edge signed agreement to explore

opportunities in defence sector

Key Insights
➢ Strategic Defence Collaboration: Adani Defence & Aerospace (India) and EDGE Group
(UAE) have signed an agreement to establish a global defence platform.

➢ Focus Areas: The partnership will explore cooperation in missiles, air defence systems,
drones (UAVs), cyber technologies, and electronic warfare (EW).

➢ Research & Development: Plans to set up R&D, production, and maintenance facilities
in India and the UAE.

➢ Global Expansion: The collaboration aims to serve not only India and UAE but also
Southeast Asian and global markets.

➢ Bilateral Defence Growth: Strengthens India-UAE defence relations and enhances

technological capabilities in both nations.

Future Outcomes
➢ Boost to India’s Defense Manufacturing: Increased domestic production of advanced
defence systems, reducing import dependency.

➢ Stronger India-UAE Defense Ties: Enhanced bilateral cooperation, leading to more

defense trade and technology-sharing agreements.

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 ➢ Expansion into Global Markets: The platform may become a key supplier to Southeast
Asian and Middle Eastern nations.

➢ Increased Investments in Defense Tech: More funding in AI-powered warfare, cyber

defense, and unmanned systems.

➢ Job Creation & Skill Development: New R&D and manufacturing hubs will generate
employment and advance India’s defense workforce.

Core Skills remains vital in the era of AI and ML

Key Insights
➢ AI & ML Adoption in Businesses: Companies are integrating Artificial Intelligence (AI)
and Machine Learning (ML) to enhance operations.
➢ Importance of Domain Expertise: Using AI effectively requires strong foundational
skills in respective fields.
➢ Upskilling & Lifelong Learning: Continuous learning is crucial as AI evolves rapidly and
job roles change.
➢ Demand for Human Skills: Despite automation, problem-solving, creativity, and
decision-making skills remain essential.

Future Outcomes
➢ Increase in AI-Skilled Workforce: More demand for professionals trained in AI, ML, and
data analytics.

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 ➢ Rise in AI-Powered Jobs: New roles in AI ethics, prompt engineering, and AI-driven
business strategy.
➢ Shift in Education & Training: Companies and institutions will offer more AI-focused
courses and certifications.
➢ Collaboration Between AI & Humans: AI will handle repetitive tasks, but human
expertise will drive strategy and innovation.
➢ Growing AI Integration Across Industries: From healthcare to finance, AI adoption will
reshape traditional roles.

Key Insights
1. World Bank’s (WB) “Doing Business” Rankings Under Scrutiny
External audits revealed inconsistencies and possible manipulation in WB’s rankings.
2. Potential Benefits for India
With WB rankings losing credibility, India might become a preferred destination for
foreign investments. China’s decline on the global scale may shift manufacturing
opportunities to India.
3. Government & Policy Implications
India’s Supply Chain Resilience Initiative (SCRI) is already promoting investment inflow.
The Indian government’s focus on "Ease of Doing Business" and infrastructure
development may further boost foreign investor confidence.

Future Outcomes
1. Increased Foreign Investments:

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 ➢ India could attract more manufacturing investments from companies moving
away from China.
2. Policy Reforms & Business Environment Improvements:
➢ Scrutiny of WB rankings may push India to further refine its economic policies
to genuinely enhance ease of doing business.
3. Geopolitical & Trade Shifts:
➢ The global manufacturing landscape may shift, with India positioning itself as
a credible alternative to China.

The Age of Quick Commerce

Key Insights
➢ Explosive Market Growth:
The quick commerce market has expanded 61x since 2020, growing from $0.1 billion
in 2020 to $6.1 billion in 2023 and projected to reach $40.1 billion by 2030. Growth is
fueled by rising consumer demand for instant deliveries and convenience.
➢ How Fast Delivery Works: Orders are fulfilled through dark stores (small, strategically
located warehouses) within 3-5 km of consumers. Products are picked, packed, and
delivered within minutes, with real-time inventory tracking.
➢ Changing Consumer Behavior: Quick commerce is replacing monthly grocery
shopping (58%) and driving impulse purchases (43%). Top Categories: Clothing (65%),
Footwear (52%), Beauty & Personal Care (51%), Mobile Phones (48%), and Electronics
(47%).

Future Outcomes
➢ Further Market Expansion: More investments in dark stores, AI-driven logistics, and
automation to meet growing demand.

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 ➢ Increased Competition & Innovation: Companies like Zepto, Blinkit, Swiggy Instamart,
and Dunzo will innovate with AI-driven recommendations, better route optimization,
and drone deliveries.
➢ Challenges in Profitability & Sustainability: Rising logistics costs, delivery personnel
availability, and operational expenses could impact margins. More eco-friendly
packaging and EV fleets will emerge to address sustainability concerns.
➢ Regulatory Framework Development: Governments may introduce new laws for
delivery worker rights, safety standards, and taxation policies.
➢ Shift in Consumer Shopping Patterns: Traditional retail and e-commerce may lose
market share as quick commerce dominates impulse buying and essentials.

Investment opportunity in Cold Chain Logistics in Africa

Key Insights
Infrastructure Challenges Impacting Cold Chain Logistics
➢ Africa's cold chain industry is struggling due to lack of investment in infrastructure
(electricity, roads, storage). Countries like South Africa are exceptions, benefiting from
better ports and logistics.
Electricity Shortages Disrupting Supply Chain
➢ Unreliable electricity forces businesses to rely on diesel generators, which are costly
and environmentally unsustainable. Legal frameworks do not ensure sustainability,
making the sector vulnerable.
Agricultural and Perishable Export Growth
➢ Africa is a key player in citrus, apples, and flowers exports. Supply is increasing, but
logistics infrastructure isn’t keeping up, leading to spoilage and inefficiencies.

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Need for a Holistic Cold Chain Approach
➢ Instead of isolating cold storage improvements, end-to-end solutions should be
implemented. A seamless farm-to-market cold chain is essential for sustaining growth.

Future Outcomes
Potential for Investment in Cold Chain Infrastructure
➢ Africa presents a huge opportunity for investment in energy-efficient storage,
refrigeration, and transportation.
Shift to Sustainable Cold Chain Solutions
➢ Due to high diesel costs and environmental concerns, Africa may adopt solar-powered
and eco-friendly refrigeration methods.

Reference Books:
• "Operations Management" – By Jay Heizer, Barry Render, and Chuck Munson
A widely used textbook covering core operations principles, forecasting, quality
management, and supply chain strategies.
All images mentioned in the document are taken from this book.
• The Goal: A Process of Ongoing Improvement" – By Eliyahu M. Goldratt and Jeff Cox

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 A classic business novel introducing the Theory of Constraints (TOC) for optimizing
production and operations.
• "Factory Physics" – By Wallace J. Hopp and Mark L. Spearman
A scientific approach to operations management, emphasizing queueing theory and
variability management.
• Operations Management: Theory and Practice" – By B. Mahadevan
This book provides a comprehensive overview of operations management principles,
including process design, capacity planning, inventory management, quality control,
and supply chain strategies.

YouTube Video
• Flying High Mumbai Airport traffic control- video explains the critical operations
management.
Link: [Link]
• Indigo Airlines India Aviation giant- video explains case study of airline business
management.
Link: [Link]
• How Toyota beat Ford and GM using its unique supply chain model
Link: [Link]
• Toyota Manufacturing plant
Link: [Link]
• Wall Street Journal Documentary on Global Supply Chains
Link: [Link]
• Operations Management Explained
Link: [Link]

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